tv [untitled] May 31, 2012 1:00am-1:30am PDT
as a longstanding relationship that those people -- it does not affect the ability to act impartially on that item. the approval of minutes for the may 8 meeting, commissioners, you have questions or comments? >> i have a slight amendment. i am catching up there. just a minute. i am still getting my ipad bearings. come back to me in a minute. >> are there any public comments on the minutes?
are there any public comment on anything that is not on the agenda today? commissioners, we have the communications events calendar and a letter summary. are there any comments on that material? item six, is there any other commission business? >> i have something. it is really a question, are we going to have a plaque on the new building? >> excellent question, i will find out for you. living on.
>> there is a community choice program. >> the afternoon, commissioners. this is a very brief item to keep the wall in the loop. and extend the service agreement we have, what we would extend it to go beyond the four and a half years of the contract that we expect to have. >> any questions? >> good afternoon, assistant general manager, the first one
is the budget status report that gives you an update-the variance in the budget. i will point out in particular, one page. the key variances are summarized on this page. that is exactly what you heard during the second quarter report. they are not as far under- budgeted as previously. they had a slight uptick in sales. they are about 2% below budget. the enterprise is projected to end the year with adequate reserves. the waste water department is the same thing.
and because of the relatively dry snowfall year, we have average precipitation of the mid 60's right now. with that, we have had less water to generate electricity. in particular, the key is between the second quarter of the third quarter is that there are about $11 million less. that is the order of magnitude which you are used to. the previous year, you have positive surprises. and so you have adequate reserves for that and it is still ending the year in the hech hechi fund. that is the case for all three of your enterprises. the other key news today would be the bond sale.
the key take away their is that we have very aggressive bidding. i have the handout at your desk. with $702 million sold, we have an average bother -- borrowing rate of 7.2%. it is considerably less than what we had planned in the financial plan. it means we have been able to achieve and lock in place about $130 million that would average $1 a year over the next 31 years. the next page gives you a summary of all the bids. wells fargo was a very aggressive bidder. we had some smaller refunding to
settlement reimbursement. very good news, something that would be very good. >> is about 25% 4.5% and you have the liquidity to back it. >> do we have that ability, or are we sticking with bonds? >> we do have that ability and we have maximized if for $500 million on the commercial paper. they have authorized us for $300 million for waste water. we want to make sure that the weighted average between the long bond in the short-term commercial paper is the best deal for the ratepayer.
>> with the conversations i have had in the treasurer's office at the department of finance, most of the issues we have had to grapple with, can there be increased savings utilizing commercial papers? unique in that regard, 87% by bonds and california are individuals, not institutions. hwill have exhausted the wonderful opportunity and you took advantage of it. >> we will next be in the market this summer with another refunding. looking at both competitive and negotiated sells for the ratepayer.
i would also like to thank our debt manager who as he is here and did a lot of the heavy lifting. >> good for you for saying that. >> that concludes my report. >> any public comment on the general manager's report? let's go back to the approval of the minutes. >> i have a slight amendment to number seven, if the language could read, commending the efforts in implementing the community benefit policy. >> where are you? >> #7 is the minutes under general manager. a slight amendment. >> without objection, that
change will be made. bawsca update. >> nicoel stle from bawsca. i wanted to keep my comments short in light of a full discussion about water supply later. there is one item that i wanted to talk about. we are pursuing the possibility of prepaying old capital that. the regional water system using the water supply agreement. in fact, at the rate analysis is the same air as the $50 million that would be repaid in this manner. we have hired a bond counsel to assist us with this study. that is making its way right
now through the state legislature. we will work to keep her updated. we appreciate the support. if there are questions i can answer for you on this or another topic, i would be pleased to do so. >> can you explain why mr. jensen could not be here today? >> his daughter got married over the weekend, it was a very large affair. he has taken a well-deserved couple days off. >> any questions? madam secretary, william cole the consent calendar? >> -- will you call the consent calendar? >> item 9, installation on
howard, harrison, approved a modification #one for a total contract amount of $986,000. and authorize final payment to the contractor. except work performed by the end jay utility company for local water on harrison street from eighteenth street to cesar chavez. approve modification #to decrease the contract by $37,707. with a total contract duration of 240 consecutive calendar days and authorize final payment to the contractor. approved modifications as needed annual paving contract
for services and main breaks. extending the contract duration by 210 consecutive calendar days. authorize the general manager to execute a change order to increase the contract amount by $110,000 for a total contract value of $3,320,770. bayview hunters point rehabilitation and pavement renovation in the amount of $2,535,027 of which over $1.7 million is funded by waste water enterprise. to the lowest qualified responsible and responsive better, -- bidder, shaw pipeline. energy efficiency for san francisco peninsula for an
amount not to exceed $3 million to the lowest qualified responsible bidder. an amount not to exceed $3 million for the lowest qualified and responsible bidder for emcor services inc.. do ratify the declaration of emergency made by the general manager and approved by the president of the commission for immediate drilling and blasting work to address a rock fall on the road the southp fork adit. to approve the selection and award agreement to daryl owens, inc. and authorize the general manager to negotiate and execute an agreement for an amount not
to exceed 1,000,255 -- $1,250,000. >> commissioners, anybody want to remove any items from the consent calendar? can i have a motion? >> moved. >> seconded. >> all those in favor? the motion carries. item ten, please. >> authorized the general manager to execute on behalf of the city and county of san francisco a funding agreement with santa clara county into the nature conservancy. toward the county acquisition of the ranch. the creation of a conservation ageneasement on such land.
and protection of conservation values through annual monitoring. >> good afternoon, commissioners. this is our third proposed acquisition, our largest to date. if they are all a little different. i will be happy to answer any questions. >> can you describe where this is? >> it is not contiguous with our property. towards the end, there are two matters. which as in contexts and it
shows the map which we have provided. before that is a map provided by the parts that shows a little bit more detail and how it basically connects the county park land to the property. >> commissioners, any questions? >> i love these kinds of projects, so i think it is really great. not only to protect the watershed, but to protect these rare parcels. >> let me take a moment to thank our staff person for countless work for years, literally. it's easy for me to present it briefly in 30 seconds, but a lot of work goes into this and it takes a lot of time. >> can you clarify one thing? some of the money will go
towards storage of the land, too, right? >> we are providing some of the funding for the acquisition and monitoring the terms of the easement. we want to make sure that the investment delivers. and so we're providing that as part of the endowment to be able to. there will be accessed eventually as part of the park system. and the easement itself will be held by the servants the and we will see that those terms overtime are honored. >> i moved to adopt item number 10. >> and a second? >> seconded. any discussion by the commission?
all those in favor? opposed? item 10 carries. item 11? >> approve a madman number-one, the datavision regional construction management services with jacobs engineering group for additional project-specific construction management services and authorize the general manager to execute this mammoth, increasing the crew by $1,500,000 for a total not to exceed 26,500 -- $26,500,000. >> this was pointed out in the quarterly report at the last meeting. we wanted of $1.5 million to pay for the additional services required. you may remember that we discovered a burial site and we had to tunnel underneath it and that increased the duration of
the contract. it is to pay for those services and additional environmental and biological monitoring. if you have any further questions, i can answer them? >> any questions? any public comment? can i have a motion? >> so moved. >> moved and seconded. all those in favor? item 11 carries. item 12, please. >> authorize the general manager to execute and mou for the access easement in, over, and under a property known as a kind of a park. >> -- known as cayuga park.
>> the park and clubhouses being renovated and we have a waistline and in the public right of way that is now part of the park. this is to protect access and rights to operate and repair and replace our waste water facilities. it also regulates rec and park with how they plant trees and shrubs. >> any questions? i have asked earlier that when we talk about iraq and mark item last week, one of the issues raised was whether or not the bonds -- it has likely been modified so we can spend it whichever way we go on. >> on lake merced, that is still
intact. this is part of the park bond, so having this easement, they get their clearance so they can go forward to the voters in november. this is part of their due diligence. >> and our interest has been protected there? >> absolutely. >> public comment? moved and seconded. all those in favor? opposed? the motion carries. thank you. item 13. >> a workshop water supply options to discuss updated retail wholesales demand projections and potential water supply options to meet projected 2035 demands. >> normally i would ask for a 10 minute limit but i understand you might need more than that. i have reminded him that studies have shown even when people are trying really hard, after about 12 minutes, they lose focus on a
power point presentation, so i would like to ask you to set the snooze alarm for 12 minutes and we can interrupt the proceedings at that point for questions >> i have some slides for the presentation here. when you are being handed now will be very relevant at that point of the presentation. i'm going to talk about some material we talked about last august, supply and demand in how we need to look through the future. i will update that material and get into information about how we are comparing different options for the commission. we wanted to identify that there are potential shortfalls by a third -- by 2035 and we posed a number of questions to the commission at that time to try to get some guidance.
here are the preliminary conclusions from that workshopped -- from that workshop. it definitely needs to be done in the context of the contract we have with our customers. the priorities for making up water supply shortfalls, the time should be covering the in streamflow requirements, maintaining assurance to our customers, providing increased customer demands in the future and making santa clara a permanent customers. it's clear you want the widest array for water supply in the best information you could get on the alternatives to make good decisions. the performance objectives established by the commission is providing 260 million gallons per day of water with a wholesale supply for customers
with a retail supply allocation of 81 million gallons per day. the policy decisions were to establish that as the interim supply limitation and be silent after that. san francisco would be a goal of not more than 20% in any year of a divine drought, which is about eight and a half years. we included the retail side through conservation, recycled water and ground water and we will report on that today. various decisions were due by the end of 2018. those decisions are whether or not to make san jose and santa clara permanent customers, how much water would be supplied to customers and whether to offer a corresponding increase in the supply insurance. this would all require a review to do something different so
that would be one or two years at the bare minimum. to look at these supplies again -- on the regulatory front, it's about 12.8 million gallons a day which might be mitigated with recapture from the filter gallery project. we are looking at somewhere between 7.4 and 12.8 million gallons a day being carved out of the supply for the in the stream flows where having. on the policy front, the specific choices before the commission are whether or not to the future also customer demands and reduce the drought supply. the responsibility for those
decisions is the primary decision rests with a wholesale customers whether they want to purchase additional supplies from san francisco because the long term strategy and we're working on supply options so we have a clear menu of choices for the commission to make and for the wholesale customers to decide what they might actually want to purchase. on the san jose and santa clara front, it's looking at the supply guarantee. the responsibility for the decisions are on the supply side and it do they want to purchase the supply? they believe that guarantee is important and are quite interested but when it comes to saying they want to buy it, it's a question we really have to get too. the total supply shortfall of
is 7.4 million gallons a day. if we change supply restrictions, we are looking at 27.4 million gallons a day. the lowest line it is green and that's the retail demand line. the blue is the total wholesale demand as it increases over time. that adds up to the red line on the chart which crosses the light blue line. that is our water supply which will change over time as the regulatory restrictions come in. that is where we get to the policy decisions in what to do about that gap. i always have to show the slide that presents uncertainty.
we have state water resources processes going on, the effect of those proceedings could be tens of millions of gallons a day. that may be a obligations that come about from the regulatory front. we will see where we end up through those. on the demand uncertainty front, we know demand will rebound in an improving economy because we have started to see an uptick. other suppliers are seeing that the drop in demand has leveled off. we have to see how fast it may recover. smart growth -- i will always bring this up. you should be focusing people in existing areas with existing existing areas with existing transportation resources lik